EET Fuel, the trading name of Essar Oil (UK) Ltd., on Tuesday announced securing $350 million finance as investors reposed confidence in its decarbonisation strategy and market positioning.
The firm secured $350 million through a combination of new financing by African Export-Import Bank (Afreximbank) and upsizing extension of existing crude facility, it said in a statement.
EET Fuels, which owns and operates the UK's Stanlow refinery, is investing $1.2 billion over the next five years to decarbonise its operations and targeting a 95% cut in emissions by 2030 through energy efficiency, carbon capture and fuel switching.
The new facilities secured are $150 million from Afreximbank - the Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade - and upsizing of the previously reported $300 million trade credit financing facility with an international oil company to $500 million.
"The company has agreed $350 million in re-financing through a combination of a new bank financing and upsizing of existing trade credit financing facilities in this quarter. This follows the announcement in October 2024 of $650 million in financing facilities including a new receivable facility with ABN AMRO Bank and the extension of the pre-existing HCOB and UMTB facility," the statement said.
The new facilities ensure EET Fuels is well-placed to deliver on its decarbonisation ambitions by strengthening its balance sheet with stable medium-term financing, and deepening existing relationships with key trading partners while also establishing relationships in new African markets.
Satish Vasooja, Chief Financial Officer at EET Fuels, said, "We're leading the energy transition, and our ambition is to become the world's first low-carbon refinery. This new facility with Afreximbank, further diversifying our sources of finance and establishing new relationships, supports our ongoing transformation and showcases market confidence in our energy transition strategy."
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